Director’s Report
The Directors of Karwan-e-Hayat (KeH) – Institute of Mental Health Care are pleased to present the Annual Report along with the audited financial statements for the year ended June 30, 2024.
Principal Activities of Karwan-e-Hayat
KeH provides free psychiatric treatment and rehabilitation to neglected and underprivileged people suffering from mental disorders in Karachi. The institution offers Outpatient, Inpatient, Rehabilitation and Community Outreach Services through its two facilities in Keamari and Korangi and through 22 Community Outreach camps within the city of Karachi.
A team of more than 160 employees work diligently to carry out KeH’s mission of providing relief to those suffering from mental ailments.
The operations of the institution are as follows:
- The flagship facility of Karwan-e-Hayat, known as Psychiatric Care & Rehabilitation Centre (PCRC) in Keamari, caters to all mental health issues under one roof. It has a 100-bed in-patient facility, a purpose-built OPD block, and offers comprehensive rehabilitation services. Free consultation and highly subsidized medication is provided at this facility.
- Korangi Community Psychiatric Centre (KCPC) provides community-based psychiatric care through OPD facilitation. Free consultation and highly subsidized medication is provided here as well.
- The Community Outreach Program consists of more than 50 monthly medical camps, conducted at 22 different locations across Karachi and its outskirts. These medical camps offer OPD services, awareness sessions, individual home visits and family psycho-social education. Patients are also provided free consultation and medicines at these camps.
At present, almost 96% of overall patients are treated free of cost and provided with medications at highly subsidized rates at these facilities and in the community outreach camps.
Operational and Financial Performance
|
Description |
2024 (PKR) |
2023 (PKR) |
Variance (%) |
|---|---|---|---|
|
Donations |
47,736,860 |
41,113,736 |
16 |
|
Zakat |
74,476,673 |
53,759,911 |
39 |
|
Fundraising Income |
17,456,722 |
- |
|
|
Receipts from patients |
135,958,464 |
104,302,335 |
30 |
|
Grant income |
25,146,174 |
14,549,506 |
73 |
|
Operating Expenditure |
|||
|
Operating expenses |
266,218,379 |
190,566,775 |
40 |
|
Administrating expenses |
32,557,785 |
25,234,205 |
29 |
|
Total Assets |
119,972,600 |
91,327,263 |
31 |
|
Net Assets |
71,489,158 |
53,228,061 |
34 |
At present, almost 96% of overall patients are treated free of cost and provided with medications at highly subsidized rates at these facilities and in the community outreach camps.
Escalating costs due to supply chain issues arising from external influences as well as the current economic situations resulting in a high inflation rate in Pakistan, was the main discerning feature of 2023-24. Major focus of the Institute was to provide improved quality to the patients. Management’s efforts to increase in the receipt donations and Zakat were fruitful this year and that has helped organization extending support to more than 34% increase in the patient’s pool this year.
The institute’s Zakat process (both collection and utilization) is regularly reviewed by the Shariah Advisor whose report is annexed as part of this Annual Report.
Directors
At the date of this report, the Directors of the institute are:
Non-Executive Directors
Mr. Mohammad Salim (Chairman)
Over 40 years of related experience, has been a catalyst...
Mr. Yacoob Suttar (Vice Chairman)
Chartered Accountant and a fellow member at the International Federation...
Mr. Ali Ahmed Khan (Board Member)
President of Friesland Campina - Middle East, Pakistan & Africa...
Mr. Faisal Mahmood Ghani (Board Member)
Advocate Supreme Court of Pakistan, Represents and advises a panel...
Mrs. Qaisra Ahmed (Board Member)
A senior social worker with experience in organizing fund-raising events....
Dr. Ayesha Irshad Mian (Board Member)
An experienced PMDC certified Psychiatrist, former Head of Psychiatry at...
Ms. Talaat Naeem Tyabji (Board Member)
A marketing and public affairs veteran with over 40 years...
Mr. Aamar Hassan (Board Member)
A veteran of over 25 years of management experience in...
Chief Executive Officer
*Outgoing Chief Executive Officer, Mr. Zaheer Uddin Ahmad, retired on January 15, 2024.
** New Chief Executive Officer, Mr. Arshad Rahim Khan, was appointed on January 15, 2024.
Composition of our Board of Directors
The total number of Directors is 9 and male to female ratio is 6:3
Election of Directors
Following the expiry of three years term of the previous Board of Directors, an election was held in 2023 and a new Board was constituted with effect from November 1, 2023 for a period of three years.
The Board would like to thank and place on record its deepest appreciation for the valuable services rendered by the outgoing Chief Executive Officer Mr. Zaheer Uddin in January, 2024.
Board Meetings and Attendance
The Board holds regular meetings throughout the year. During the financial year ended June 30 2024, six (06) meetings of the Board of Directors were held. None of the meetings were held outside Pakistan. The details of attendance at such Board meetings are as follows:
|
Name of Director |
Meetings |
Attended |
||
|---|---|---|---|---|
|
Non-Executive Directors |
||||
|
Mr. Mohammad Salim – Chairman |
6 |
6 |
||
|
Mr. Yacoob Suttar – Vice Chairman |
6 |
6 |
||
|
Mr. Ali Ahmed Khan |
6 |
6 |
||
|
Ms. Talaat Naeem Tyabji |
6 |
6 |
||
|
Mrs. Qaisra Saleemuddin Ahmed |
6 |
6 |
||
|
Dr. Aamir Mustafa Jafarey* |
6 |
3 |
||
|
Dr. Ayesha Irshad Miyan |
6 |
3 |
||
|
Mr. Faisal Mahmood Ghani |
6 |
6 |
||
|
Mr. Aamar Hassan |
6 |
3 |
||
*Dr. Aamir Mustafa Jafery joined the Board from November 1, 2023.
Leave of absence was granted to the Directors who did not attend the meetings.
Maintaining Financial Stability
One of the most significant aspects of Institute’s strategic planning is maintenance of sufficient reserves at all times to ensure unhindered operations and seamless service delivery.
Through our vigilant and appropriate risk mitigation measures we strive to navigate difficult bottlenecks that may arise from time to time and also to maintain robust financial sustainability.
Effective Compliance and Risk Management
Owing to the changing landscape and evolving regulations, guidelines and rules for non-profit organizations, legal and compliance areas require constant attention. The Board is cognizant of the matter and has strengthened the roles of sub Committees of the board:
Principal risks and uncertainties of the Foundation are:
|
Risks |
Mitigation Action |
|---|---|
|
Reputational Risk |
We manage this through organizational training, implementation of policies and procedures to ensure that all KEH employees know how to act and respond appropriately in any situation. |
|
Regulatory Risk |
We keep up with the regulatory changes and create internal policies and procedures to implement them. |
|
Contribution Risk |
This is managed by diversifying our financial resources for continuous flow of funds. |
|
Investment Risk |
We stay diversified within each type of investment. |
|
Internal Control Risk |
We manage this through an independent internal audit function that reports directly to the Board. Other monitoring mechanisms are in place at an organizational and departmental level as well. |
|
Recruitment & Retention Risk |
We attract, develop and retain the best talent at all levels of the organization. |
|
Safeguarding Risk |
A set of policies, procedures and practices are in place to ensure that no harm comes to children or other stakeholders as a result of their contact with the organization, its programs or people. |
Statement on Corporate and Financial Reporting Framework
The Directors of KeH take pleasure in presenting this report, together with the Accounts of the organization for the year ended June 30, 2024. The Board members are pleased to state that the management of the organization is committed to good corporate governance and complying with the best practices as applicable to a Section 42 company. In compliance with the Code of Corporate Governance, the Directors are pleased to state as follows:
- The financial statements prepared by the management of the Company present its state of affairs, the result of its operations, cash flows and changes in equity.
- Proper books of accounts of the Company have been maintained.
- Appropriate accounting policies have been consistently applied in preparation of the financial statements and accounting estimates are based on reasonable and prudent judgment.
- International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of the financial statements.
- The system of internal control is sound in design and has been effectively implemented and monitored.
- There are no significant doubts upon the Organization’s ability to continue as a going concern.
- There has been no material departure from the best practices of corporate governance as detailed in the regulations. Financial statements for the year 2022-2023 are presented in this report.
Abstract under section 213 (1) of the Companies Act, 2017
During the year ended June 30, 2024, the remuneration of Arshad Rahim Khan, Chief Executive Officer was PKR 4,784,000/- from Jan-24 to Jun-24. There were no changes in other terms and conditions of his appointment.
During the year ended June 30, 2024, the remuneration of Zaheer Uddin Ahmad, outgoing Chief Executive Officer was PKR 4,635,000/-.
Involvement of the Board of Directors
KeH’s Board of Directors is a group of experienced and qualified professionals who bring their diverse knowledge and skills to the organization. The Board monitors progress against strategic objectives, fundraising plans, financial trends and their implications to ensure that KEH operations are stable and are aligned with its core mission. No Director or their relatives received any remuneration, payment or benefit directly or indirectly from the institution.
Further, members of the Board are actively involved in fundraising for KeH and serving as a source of guidance for all functional leaders within the organization.
Financial Statements
The financial statements of the Foundation have been approved by the Directors and duly audited by BDO Ebrahim & Co. Chartered Accountants; their report is attached with the financial statements.
Future Outlook
Karwan-e-Hayat (KeH) remains dedicated to providing high-quality mental health care in Karachi. After facilitating over 243,000 patient visits in the fiscal year 2023-2024, the Board has approved several ambitious plans to expand our services and enhance the quality of care:
- Expansion of OPD Operations: Increasing outpatient department capabilities to serve more patients with efficiency and care.
- Enhanced Patient Referrals: Boosting the number of referrals to ensure timely access to mental health services.
- Improved Infrastructure: Upgrading hospital facilities to enhance the patient experience and provide a safe, therapeutic environment.
- Greater Outreach Activities: Expanding community outreach to establish more camps in remote areas, ensuring easier access to mental health care services.
- Continuous Quality Improvement: Committing to ongoing initiatives that improve the quality of care provided.
- State-of-the-Art Treatment: Implementing evidence-based treatment, innovative approaches and rehabilitation techniques to deliver the best possible care.
- Preventive Health Promotion: Promoting mental health awareness to forestall mental health issues before they become chronic and improve overall community well-being.
Creation of the Quality Management Department (QMD)
The foundation for total quality management was laid in the second half of the year by the formation of the Quality Management Department (QMD). It will continue to focus on enhancing operational efficiency and patient safety throughout the organization. Ongoing efforts are in process to revise the existing policies and develop other policies which will address unforeseen and unaddressed challenges.
The upcoming major step is the implementation of an organization-wide baseline questionnaire to develop a Quality Assurance and Performance Improvement Plan. This will assist in identifying the existing gaps in the system and help to rectify them. QMD is dedicated to maintaining accountability, transparency and organizational learning by regularly and systematically evaluating KeHs’ mental health programs, policies, and processes. QMD will conduct regular assessments and evaluations to ensure that the quality of patient care and treatment remains at the forefront of our operations. By focusing on these critical areas, it will help KeH to continuously improve and adapt to the evolving needs of our clients, community and other stakeholders.
Strategic Expansion Plans
We are also planning to expand our physical presence beyond the Keamari and Korangi areas by adding new locations, bringing us closer to our goal of becoming a best-in-class psychiatric care facility. This expansion is a priority for the upcoming year, and we are carefully assessing our organizational capacity, capabilities, and financial resources to achieve this goal. By doing so, we aim to make comprehensive mental health care more accessible to the masses, providing a one-stop solution at additional accessible locations.
Tele-Psychiatry Initiatives
Recognizing the growing importance of digital health solutions, KeH is expanding its tele-psychiatry services. Research indicates that follow-up times can be significantly reduced from 44 days to 22 days through phone or WhatsApp consultations. With nearly 100 million smartphone users in Pakistan, there is a significant opportunity to increase our reach. We are developing strategies to convert more walk-in patients into telephonic follow-ups and exploring partnerships with institutions outside Karachi to promote tele-psychiatry for those living far from mental health facilities. Concerted efforts have already been made to establish a working relationship with a prominent tele-health facility to facilitate KeH on a national level.
Funding Strategy
To support these initiatives, we have developed a comprehensive funding strategy:
- Engagement with Related Stakeholders: We will approach financial institutions and public sector organizations to secure donations and increase funding. We will also reconnect with existing donors and re-energize dormant supporters to bolster our financial base.
- Global Outreach to the Pakistani Diaspora: We plan to establish a KeH USA Chapter to tap into the generosity of the Pakistani diaspora. This effort will extend globally to communities with significant Pakistani populations, aiming to secure additional funding and support.
- Government Collaboration: Strengthening our relationship with government leaders to obtain Zakat and donations for the upcoming fiscal year. This will help support both our operational needs and capital projects.
- Enhanced Donor Engagement: We will focus on deepening our engagement with current and potential donors. KeH Board members and Advisors will actively connect with corporates, entrepreneurs, and individual supporters to expand our network and funding opportunities.
With these strategic plans, KeH is committed to advancing mental health care, improving patient outcomes, and making a lasting impact on the communities we serve.
The above Directors were elected for three years in the Annual General Meeting held on November 25, 2023.